Franklin Cards sells greeting cards for $7.50 each and plans to sell 180,000 cards every quarter....
Franklin Cards sells greeting cards for $7.50 each and plans to sell 180,000 cards every quarter. The management accountant has determined the company must sell 108,000 cards every quarter to break even. What is the margin of safety (MOS) in both units and sales dollars?
Homework Answers
Margin of safety units
= Sales - Breakeven sales units
= 180,000 - 108,000
= 72,000
Margin of Safety in dollars
= 72,000 * 7.50
= 540,000
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each in the coming year. Variable cost is 35% of the sales price;
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Required:
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